Full Process Grove Pension Solutions Ltd

Transcription

1 Full Pension Transfer Service & Transfer Value Analysis (TVAS) Only Service Full Process Grove Pension Solutions Ltd

2 Full Process An Introducer Agreement must be signed by Grove and the Financial Adviser / Introducer at outset together with the Introducer Due Diligence Form. PENSION TRANSFER SERVICE Transfer value Grove s advice charge On the first 100,000 3% with a minimum of 1, ,001 to 750,000 3% on the first 100,000 and 1% on the balance 750,001 and above 3% on the first 100,000, 1% on the portion between 100,001 and 750,000 and 0.5% on the balance above 750,000 Completed Enquiry Form (LOA) Scheme info supplied/requested TVAS completed Fact-Find completed and Client Agreement issued Recommendation made, suitability report issued with application forms Servicing Agency switched back to Introducer Supplementary introducer fee settled Funds transferred and fee paid to Grove Application forms returned and transfer requested 1. Enquiry Form Letter of Authority (LOA) Scheme information and Scheme Details Grove must be provided with a completed Enquiry Form for each scheme. The Enquiry Form provides us with authority to contact the scheme to obtain details of the benefits. It should be completed and then signed by the client. If available, copies of any information held, for example benefit statements, scheme booklets, or a recent transfer value, should also be provided as they will help speed up the process. 2. Request Information If not already provided, we then request the following information: Cash Equivalent Transfer Value Benefit Statement Immediate Early Retirement Benefits (if over age 55); and Current Scheme Booklet Discharge and Warranty Forms We phone 2-3 days after the request is issued to check that the request has been received and obtain a likely timescale for the response. We then chase every 2 weeks until the

3 information has been received, keeping the client and introducer updated frequently during this process. In addition to the above information we also require scheme specific details that may not be included in the standard responses and these include: Details of death benefits in deferment and in retirement Revaluation rates in deferment and increases in payment for all the tranches of pension Details of any GMP, both pre and post 88, and whether these are offset against any increases between the date the benefits are taken and State Pension Age Is a bridging pension payable, and if so to what age. What are the commutation rates. Is the scheme fully funded or in deficit, in which case has the CETV been reduced. 3. TVAS Once we have received the above information we review the benefits being provided and produce a TVAS report. In some instances, the scheme may not provide all of the information requested. Where practicable we may then make certain assumptions in order to complete the TVAS and preliminary assessment. This helps to ensure that the process is completed as quickly as possible. 4. Full Suitability Report A Fact Find is completed by the introducer and / or client, either online (when available) or having downloaded our template. On receipt of the completed Fact Find we will then carry out a full analysis and prepare transfer illustrations. If we require any further information, or clarification, we will contact the introducer (or client directly, if preferred). If the recommendation is to proceed and the introducer requires an Introducer Adviser Charge, this can be agreed with the client. The fee can be deducted from the transferred funds along with our Advice Fee and will be documented in the Suitability Report. If the introducer requires an ongoing fee this can be organised before or after the transfer has been completed, depending on the provider chosen, and the servicing agency has been transferred back to the introducer. In all cases it will be included in the TVAS Report. Grove will carry out an electronic Money Laundering and ID check and directly provide the scheme member with our Client Agreement, with a copy being sent to the introducer. The Suitability Report is ed to the introducer, together with a copy of the TVAS report if required, and the original SR sent to the client (unless previously agreed to be sent to the introducer). This includes the following attachments: Forms and documents required for the transfer (these will be partially completed in advance) Authority to proceed (this confirms that the client wishes to proceed and the personal information provided in the report is correct).

4 5. What happens if our advice is Not to proceed with a transfer? The FCA s starting point for any pension transfer was don t do it (COBS 19.1); however, there have been a significant number of developments in pension legislation since this statement first appeared. In our experience, whilst we wholeheartedly agree with the principle of this statement, it still remains that there are a number of extremely good reasons why it can be advisable for an individual to transfer; it all depends on their circumstances and whether it can be demonstrated to be in the client s best interest (COBS 19.1). Grove has a vast amount of experience and in-depth knowledge of advising people considering a pension transfer and, whilst we have advised many to transfer, we have also advised against doing so as well. Those we advise against can be for a range of reasons from it simply being a very bad idea because of significant financial loss, to those that might have other, more suitable, alternatives to achieve what they want. However, depending on the degree of strength against proceeding with a transfer, we will consider completing a transfer in some circumstances. The merits of these insistent clients will be discussed beforehand with the introducer in every case. Arranging the Transfer On receipt of the forms and documents requested we will check that everything has been included and signed as requested. If anything is missing or incomplete we will inform the client and introducer. The paperwork is sent to the new provider. They acknowledge receipt to us and then send any forms and documents onto the transferring scheme. We chase the transferring scheme regularly to ensure that the process is completed as soon as possible and keep the client and introducer informed of the progress. This includes chasing any further information not originally requested. This process can take several weeks. Transfer Completed Once the transfer has completed the new provider will issue documents to confirm the pension contract is in force, along with payment of the agreed fee. We will a copy to the introducer unless it is an online system in which case the introducer will have access when it is transferred back for ongoing servicing. We issue a letter to the client explaining that the transfer has completed and, if any, pay the Introducer Fee once we have been paid. The Financial Adviser will then replace us as the servicing agent for the policy and is free to set up any on-going adviser charge or ad-hoc fee as agreed between them and the client.

5 TVAS ONLY SERVICE The Financial Adviser / Introducer should send us the scheme(s) Transfer Value statement and details of benefits payable at normal retirement age, as indicated on the Submission Form, together with payment of 295 for each scheme. It is up to the introducer whether this cost is passed on to their client. If there is any further information required we will contact you to ascertain this. We will then provide a TVAS Report for each scheme. If you intend to give advice on the transfer of the above then you will need the full Advising on Pension Transfers and Pension Opt Outs permission from the FCA.